The Marketing Mix of Healthy Beverages - Essay Example

Mission ment Obesity has become a disturbing factor and consumers lay greater stress on health and well being. The market for carbonated drinks is reducing as consumers switch over to health drinks. Since a lot of health beverages are available the market for such drinks and juices is gaining ground. To capture the segment that has become health conscious, a fermented milk product, FermHeal, can be introduced in the market as it has a wide array of health benefits and depending upon the source, everything from cancer to a hangover can be improved upon its consumption. This is a functional drink and can be made available in different flavors to suit different tastes. With the mission to reach the product to the vast majority of the people, it has been decided to undertake a marketing plan which includes stating the marketing objectives, the research to forecast the demand and then the marketing strategy. Marketing survey To determine the demand that could be generated for this new product, it is considered necessary to conduct a survey. To conduct the survey market segmentation is necessary so that the target market is studied rather than the whole market. Since this is a health drink and that too a milk product, focus would be on the children between 6 and 18 years and the women. The segmentation would further be based on psychographic details like lifestyle and social demographics like the income level. Thus to conduct the survey questionnaires have been designed (Appendix A). These questionnaires would be sent out via emails to housewives. The addresses would be procured from the local clubs and women’s organizations. Questionnaires would also be sent to the local clubs and organizations where a large number of women are employed. Marketing Mix The marketing mix of any product would include the right product at the right time in the right place with the right sales and promotion strategy and at the right price. To have competitive positioning, these are the four P’s (Product, Price, Place and Promotion) very essential for marketing any product. To ensure good sales of our product and services, it is essential to understand the product, its need and importance, the price should be reasonable, if necessary dual pricing, the product should be easily available hence distribution has to be right and finally the right awareness of the product. The promotional strategies have to be taken into account depending on competitive factors. The product is new in the market with a focus on health and targeted at children and the women and hence success is assured. The product would be priced reasonably to penetrate the market and price revision could be considered at a later stage when the product becomes acceptable and gains popularity. Discount would be offered on bulk purchases and some loyalty benefits would be offered to customers who go in for repeat purchase. The product would be market through different channels to reach a large segment. Hence it would be made available at all retail stores, discount stores, convenience stores, at gas stations, at local clubs and the neighborhood stores. In addition, direct sales would be entertained through the internet. Promotional activity would be undertaken through different means. Those who respond to the questionnaire would be sent a sample of FermHeal free. In addition, advertising would be done at social clubs and through local dailies. Product positioning The product actually tastes good and is healthy drink. Milk and dairy products have a high level of consumer penetration and most households buy dairy products. Since yoghurts are very popular it is expected that FermHeal too would gain the market share. People are generally aware of the food they eat and its impact. They are also conscious of the need for a balanced diet. There is a great demand for the product and if the logistics are worked out right, the product can capture a major share of the market soon; it could even attract the segment that has never considered milk as a health drink. Hence the product is very well positioned as there is no competition. Marketing communication objectives Today markets have become highly fragmented with fierce competition, reduced marketing budgets, shorter product life-cycles and limited growth (Eubank & Simulin, 2004). To satisfy the customer needs, they have to be first identified and anticipated and then the marketing efforts directed accordingly. The effectiveness of marketing depends largely on how the marketer communicates with the customer about the product. Marketing communication is a step beyond the four P’s of marketing. Marketing communication includes packaging, advertising through different channels, and promoting the organization itself as a brand. Packaging plays a critical role for marketing communications (Silayoi & Speece, 2004) and especially in the packaged food market. Rundh (2006) asserts that innovative packaging can change the product perception and create a new market position. Selective consumers make their purchase decision based on information written on the package. This makes it important that the manufacturers should print correct information. Communications through advertising depends upon the market to be captured. Companies usually conduct communication audit to determine how effective their advertisements are. Customers were interested in their own success rather than the company’s strengths (Cliff, 1998). Any organization indulging in advertising campaign must have a strong message to attract customers. FermHeal would attempt to reach the message that this drink could make a happier and healthier family. To select the right channel it is insufficient to sell through the C-stores. In addition, it is planned to sponsor programs where the mother and child are involved. Product life cycles are shorter and word-of-mouth publicity (WOD), an uncontrolled form of communication having a stronger influence on brand attitudes would be relied upon. To augment this mode, for referring friends additional rewards would be granted in the form of free pouches of the FermHeal. Since negative WOM and publicity can also adversely affect the brand (Grace & O’Cass, 2005), the company would assure that no negative publicity takes place. Free samples would also be distributed at local clubs and through arrangement with the local stores on purchase over a certain amount of goods. Marketing communication should reach a range of stakeholders and other players peripheral to the target market and which influence the business success (Clulow, 2006). As such, scratch card carrying special offers would be given to all consumers that purchase FermHeal during the first month of the launch of the product. The retailer in question would also be granted extra margin, which would attract the retailers to stock our product. Men and women process advertising messages differently with the women being more sensitive to the product of risk. Advertising should reflect the changing needs of the women to which they respond positively. Hence FermHeal should concentrate on creating awareness through the internet as it is an important form of communication and entertainment for the women. Feedback After the initial launch it would be prudent to obtain a feedback on the product and the service offered in the procurement of the product. Direct interaction is planned either at the local clubs or after prior appointment at their homes. Focus-groups are effective in providing information on why people think the way they do. This has certain advantages even over the personal interviews as participants tend to be more comfortable and natural. Besides, they influence and are influenced by others just as they are in real life (Redmond & Griffith, 2003). This would generate data from different groups of people which would help us in further streamlining our marketing strategy. Marketing budget Initially it would start on a low key as much has been spent on product development and package designing. Thus more reliance would be on WOM and through the advertising at the local stores. Expenses would also be incurred in providing the free samples and recruiting local staff. Advertising through media would be undertaken at a later stage. The retailers would have to be compensated by way of incentives or commissions. All these fall under the marketing budget and it would not exceed $5000 per month. Lifestyle changes have taken place and the trend has shifted towards health and well being. The marketing communication mix aims to attract consumers based on health and well being. Obesity is a major concern and since FermHeal does have any additives and artificial colors used, it is expected that the product would be a success. Internet as the advertising and selling media would be able to attract the target segment – women who spend much more time on the internet. The product is well positioned and with the right strategy it would able to capture the market in a short time. References: Cliff, M. (1998). Cutting-edge companies use integrated marketing communication. Communication World. Available from: http://www.allbusiness.com/periodicals/article/731441-2.html [accessed 30 June 2008] Clulow, V. (2006). Futures dilemmas for marketers: can stakeholder analysis add value? European Journal of Marketing Vol. 39 No. 9/10, 2005 pp. 978-997 Eubank, S. & Simulin, J. (2004). Ten Guidelines for Successful Brand Management. Available from: Read More